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States Look At Internet Sales Tax

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As states across the country struggle with budget deficits in the billions, many officials are beginning to eye sales taxes on online shopping. Much of this season´s holiday shopping was done online and not all of the money spent contributed to state taxes. In California alone, collecting such taxes could yield at least $200 million yearly.

Under a U.S. Supreme Court decision, a state cannot force a business to collect sales taxes unless it has a physical presence in that state – such as a store. There is work underway to change this.

Utah Tax Commissioner R. Bruce Johnson hopes within a year that at least ten states will create a simple, single statewide sales tax rate. He has tried to enlist Wyoming, North Dakota, Ohio, Michigan, Florida and North Carolina in his campaign.